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Elder Abuse

12/26/2017

“As Baby Boomers continue to enter their senior years in large numbers, law enforcement officials and CPAs expect to see more instances of elder financial abuse.”

Seniors are particularly vulnerable to financial scams, says The Journal of Accountancy in its recent article, “Ways to stop elder financial abuse before it starts.” One in 20 senior citizens reports being the victim of financial abuse, according to the National Adult Protective Services Association. These crimes are increasing. Scams targeting the elderly come in several forms, and some of the most common are discussed below.

Someone posing as a grandchild calls and requests money to get out of jail or to resolve a threatening legal problem. Sweepstakes and lotteries are also pretty common scams, yet people still fall for a call, letter, or email telling the senior that he or she has won a sweepstakes or lottery. However, to claim the winnings, the senior must first pay taxes, fees or other expenses. Another scam is phishing, where a senior citizen receives an email saying he or she has a refund coming from the IRS. However, to process the refund, he or she must provide banking details. These emails look convincing, but remember the IRS will never ask for this information by email.

There are several reasons why seniors are particularly vulnerable to falling victim to financial scams.

One reason is they may not be financially savvy or technologically adept. The scams have become more sophisticated and involve better use of technology. Seniors may have more disposable income, they’re living longer, and some are not very good with technology.

The conditions create a tempting target for criminals.

A fraud might go undetected for some time. This makes it more difficult to nab the fraudsters. When people do fall victim to scams, they also may feel embarrassed and don’t want to come forward. However, if they did, more people would be aware of these crimes. This may possibly prevent it from happening to someone else.

Publicizing common scams can help older people and their families to be on the lookout.

Finally, seniors shouldn’t give out personal financial information, like Social Security numbers or banking account numbers, to anyone who calls or emails them.

It’s a long-overdue first act in thwarting the obvious abuses of this mostly secret system. Research shows there are at least 1.3 million Americans now living under guardianship control with $50-300 billion in assets—at risk for exploitation.

Both houses of Congress have passed the Elder Abuse Prevention and Prosecution Act, which is designed to bolster the laws on elder abuse, neglect, and exploitation, including those by telemarketers and email scammers.

Congress has also now finally acknowledged the nationwide issue of judges who pass over family and appoint outside for-profit guardians to handle the financial and personal affairs of the elderly. This can mean that hard-earned estates are wiped out, and inheritances end up paying the fees of total strangers.

There are many appointed guardians who help the elderly with no family members or unavailable family members to help them in their last years. These kind people handle all aspects of seniors' lives, such as medical matters, finances and funeral arrangements.

If President Trump signs the bill into law, the Department of Justice would assign at least one assistant U.S. attorney in each federal judicial district to investigate reports of wrongdoing by guardians. The assistant U.S. attorneys would have the authority to ask specially trained FBI agents to help with these investigations. The law would also mandate that the DOJ to set up an elder abuse resource group to facilitate information-sharing among federal prosecutors. Within 60 days of the president's signing the bill, Attorney General Sessions would designate a DOJ elder justice czar to run this new investigative process.

The Americans Against Abusive Probate Guardianship and other family-centered advocacy groups are pleased that Washington has now acknowledged there is a big problem with state guardianship systems that see judges declare absent citizens as "incapacitated," taking as truth the claims of one family member over all others and continuing to appoint questionable guardians in lucrative cases without much supervision.

AAAPG's research has found that federal investigators are already actively looking into questionable guardian practices in at least six states: New York, Pennsylvania, Rhode Island, Florida, Washington, and New Mexico, where a 28-count indictment on charges of conspiracy, fraud, and theft was recently unsealed against Ayudando, a private guardianship company. More indictments are anticipated against other guardians.

One thing this new bill doesn't do is address the problem with the judicial system. Judges appoint guardians with little or no follow-up, in a system that is so entrenched and unaccountable that only action on the federal level can remedy it.

In addition, the legislation fails to address the need to accurately monitor the number of Americans who are held in guardianship or to create a central registry where complaints against unsavory court appointees could be delivered. Without a way to track unsuitable guardians, they can be repeatedly appointed.

10/11/2017

“A new Texas law gives financial institutions greater authority to stop transactions that they suspect are aimed at defrauding elderly or disabled clients.”

An elderly woman in Dallas County recently sold her home and wired the $200,000 proceeds to a mysterious bank account, a victims’ advocate said. The “alleged Nigerian” promised to marry her. But it was a scam, and now the woman is homeless.

To thwart these types of scams, a new law signed by Governor Greg Abbott gives financial institutions greater power to stop transactions like the one described above. Under previous Texas law, some banks, credit unions, and securities firms would routinely stop transactions on behalf of elderly or disabled clients, who they suspected were the victims of fraud. But this new law provides financial firms even more freedom to do so. In fact, it gives them immunity from litigation when halted transactions turn out to be legitimate or when fraudulent transactions get by undetected.

The bill passed both the Texas House and Senate easily. However, the immunity provision was not pleasing to one conservative lawmaker.

“I do not believe that banks should be held harmless when they unreasonably, or without a sound basis, deny access to a person's money,” said state Rep. Matt Rinaldi, R-Irving, who was one of ten “nay” votes in the Texas House.

But the Texas Bankers Association said it was important for workers in the financial industry to have protection, so they could report perceived fraud to the correct authorities.

The new law also directs financial institutions to set policies that spell out reporting procedures for employees, when they suspect an elderly customer may be the victim of fraud.

Despite the new law, advocates say challenges remain. They note that the law doesn’t address the greatest issue concerning the state's role in combating such scammers. The Texas Department of Family and Protective Services only has the authority to investigate financial predation, if a relative of the victim attempts to commit the fraud. When strangers try to con the elderly, the cases are usually referred to the Texas Attorney General’s office or local law enforcement. Victims are less apt to get help there, because law enforcement is under no obligation to investigate these crimes.

The new law also says that banks can notify a “third party” who is “reasonably associated with the vulnerable adult” to provide assistance when flagging a potentially fraudulent transaction.

09/07/2017

“Elder financial exploitation has been called ‘the crime of the 21st century.’”

The U.S. Senate passed bipartisan legislation to step up enforcement against perpetrators of crimes targeting senior citizens. The Elder Abuse Prevention and Protection Act of 2017 was introduced by Judiciary Committee Chairman Chuck Grassley (R-IA) and Senator Richard Blumenthal (D-CT). The bill passed by a voice vote, reports kiow.com in its article, “Senate Passes Bipartisan Bill Curbing Crimes Against Seniors.”

“This legislation will enhance our response to the cowardly criminals who try to exploit America’s seniors. Families across America, including in my home state of Iowa, have been victimized by such crimes, and as the population ages, we can expect more and more victims if we don’t act. The Elder Abuse Prevention and Prosecution Act takes meaningful steps to equip law enforcement, seniors and caregivers with additional tools so they can deter these crimes and hold perpetrators accountable,” Grassley said.

“Our bipartisan legislation will help prevent the utterly unconscionable scourge of elder abuse and hold its shameful perpetrators accountable. Far too many seniors in our country are abused or exploited by the very people who are supposed to care for them. This issue hit home in Connecticut with the tragic case of Purple Heart recipient Robert Matava. A national hero, he deserved the best care during his golden years. Instead, he was defrauded and left penniless by those he trusted most. Abuse of our country’s elders is too often overlooked, and we must do everything in our power to ensure their financial security and physical safety,” Blumenthal said.

Research shows that financial exploitation may be the most widespread form of elder abuse. It costs seniors in the U.S. over $36 billion annually. The legislation will expand data collection and information sharing to help prevent and respond to all forms of elder abuse and exploitation, including financial crimes against the elderly. The bipartisan Elder Justice Coalition called the bill “one of the most comprehensive and meaningful bills ever developed to address the rapidly increasing problem of elder financial abuse in America.” It also has the backing of Consumers Union, SIFMA, the 60 Plus Association, the Alzheimer’s Association, the National Center for Victims of Crime and many others.

Grassley chaired a Judiciary Committee hearing in 2016 to look at the best way to protect older Americans from financial abuse. The Senator also launched several inquiries to combat crimes against seniors and worked to raise greater awareness for these issues.

08/04/2017

“The Houston Bar Association has filed a lawsuit seeking to shut down a fake law firm website that is using the pictures of real lawyers in an apparent scam targeting elderly people.”

A fake law firm going by the name of Walsh & Padilla has been offering estate planning services, the Houston Chronicle reports.

In reality, the ABA Journal notes, in its article, “Fake law firm website uses real lawyers' pictures to fleece consumers, bar lawsuit says,” the scheme’s website appears to be operated from South Africa and uses photos of lawyers taken from real law firm websites. The scammers mail letters to elderly people telling them they’ll be getting life insurance proceeds, after they provide their bank account numbers and other financial details. One senior was scammed out of $14,000, the lawsuit says.

The bar association obtained a court order to shut down the website. It is now trying to locate the web server and to serve the restraining order. The bar has also filed a criminal complaint with the local prosecutor’s office.

Walsh & Padilla marketed its real estate planning legal services to unsuspecting elderly clients on a website displaying professional looking attorneys attired in suits and ties. However, a closer look by the Houston Bar Association discovered that the law firm was fictitious and the site was created to scam seniors out of their life savings. The site has actual contact information, including a working phone number with an automated voicemail system that connects callers to the box of partner “Jonathan Walsh.”

Walsh & Padilla was first noticed by the Houston Bar Association, when its president received a call from a Houston law firm letting him know that the photo of one of the association’s partners appeared over the name “Jonathan Walsh, B.A., J.D.”

Another estate planning and probate attorney in Houston received calls from Canada. He discovered that his firm’s website had been duplicated by the fake firm. One of the calls was from a Canadian who had received a call from Walsh & Padilla, after a supposed relative died in Houston and left a life insurance policy of $6.2 million. All of this was false information. Fortunately, the caller knew to question such a claim, before sending his bank information.

08/01/2017

A recent woodtv.com article, “88-year-old nearly scammed by fake lottery, warns others,” tells the story of an elderly couple who love their home. Unfortunately, they are running out of money and may need to move. That’s why it was such a godsend when a letter came in the mail telling Betty that she’d won $4.5 million in a Madrid-based lottery.

“It was stamped by the government, approved by the government,” Betty said. “I just figured, all these stamps, it’s got to be real.”

The letter from Portugal arrived weeks after she’d mailed a different ball-related game of chance, a Pick Quick card that had come in a Publishers Clearing House mailing. She thought the letter was notification that her Pick Quick card was a winner.

But this was different. The letter from “The Mega Lottery Picker 2017” explained that she’d have to give 5% of her winnings to a “promotions company” and they offered to wire the money to her bank account. How convenient, Betty thought.

Fortunately, before calling the lottery company with her banking information, she first called an attorney who she was already scheduled to meet the next day to talk about the couple’s finances. Betty thought there was no need to meet because she was now rich. But the paralegal she spoke with at the law firm was suspicious and asked Betty not to call the “lottery.”

After investigating, the law firm saw that it was a scam, much to Betty’s disbelief.

This scam isn’t uncommon. For example, the federal government is now prosecuting several Jamaicans in a telemarketing lottery scheme that allegedly bilked around 100 Americans out of more than $5.7 million. Many of the victims were elderly. There’s no evidence the letter Betty received is linked to the Jamaican scam.

The Federal Trade Commission offers the following tips to recognize a scam and to avoid being scammed.

There’s a fee to pay;

You must wire the company money;

You’re required to deposit a check sent to you;

They say they’re from the government;

It’s a bulk mail notice;

They call you, even though your number is on the Do Not Call Registry;

03/07/2017

“More than 5 million Americans were living with Alzheimer’s disease in 2016.”

The Alzheimer’s Association reports that one in three seniors will die with Alzheimer’s or some other form of dementia. These dramatic numbers mean that, either directly or indirectly, most families will be affected by this disease.

WTTW.com’s recent article, “For Caregivers, Dealing with Dementia Can Be Tough Reality,” explains that for loved ones, the reality of managing the care and financial affairs of a senior with diminished mental capacity can be extremely stressful. Unfortunately, tales of exploitation and abuse are not uncommon.

Doctors say that unusual behavior can be an early sign that a person may be suffering from some form of mental decline or impairment. Examples of this are getting lost while driving in a familiar area or wearing dirty clothes when the senior has previously been meticulous about his or her dress. The symptoms of Alzheimer’s become more apparent as time goes on. This can often be a source of discord among family members, because it’s painful to acknowledge that parents are declining and are not behaving as they used to. This denial sometimes creates tension.

With the cost of care and the burden it frequently puts on the family, communication and preparation are critical. Advance planning can’t be stressed enough, since roughly 60% of family caretakers use a portion of their own funds to cover the cost of care.

Caregiver abuse is also common in financial abuse cases where the typical scenario is an older adult left one-on-one with a 24/7 caregiver.

A caregiver often may encourage a vulnerable senior to sign off on things that he or she doesn’t understand. The article noted that under Illinois law, the Elder Abuse and Neglect Act, anyone who has a license issued by the state must report any cases of suspected elder abuse.

10/17/2014

Elder abuse is a term that means someone is knowingly, intentionally or negligently causing harm or a serious risk to a senior. When Michael Casler contacted “8 on Your Side,” he was confident his 91-year-old brother-in law Benny Goo was a victim.

Benny Goo is a World War II veteran who fought in the Battle of Normandy. At one time, he was very affluent with a gorgeous home in Hawaii. But not anymore. Mr. Goo says that a woman named “Barbara” stole $2 million from him, which forced him to sell his home.

According to a KLAS TV(Las Vegas) news report posted on the station’s website, titled "Veteran claims elderly abuse by ex-wife," Benny believes that “Barbara”—the woman who took advantage of him—was his second wife. Mr. Goo said that when he had a stroke, Barbara placed him in a nursing home. He never saw her again. However, Barbara was busy cleaning out his bank account and switching his Social Security and pension checks to be deposited directly into her accounts.

After five years in a nursing home, Benny started to request contact with his family. His care providers found Benny's sister and brother-in-law. Once the two discovered what had happened, they asked KLAS TV's "8 on Your Side" for help, but there was little that the investigative team of reporters, law enforcement, or anyone else could do to help him.

You see when a spouse spends communal money or opens additional bank accounts, it is not deemed "elder abuse" under the law. It is what is called spousal privilege. Benny's wife did not break any laws and was within her rights as his spouse to spend and transfer the money. Unfortunately, the only recourse Benny had was to divorce his wife and get his Social Security and pension checks redirected to his accounts. Unless, Barbara has a change of heart and returns the money to Benny, it is gone.

This short but dramatic tale shows how our elderly can so easily be abused and used. If you have an elderly relative, be sure to keep an eye on new friends that suddenly enter their lives. As you can see, the only protection in some instances from unscrupulous individuals is diligence.

Talk with an experienced elder law attorney before this happens to your family member or loved one. He or she will have a wealth of information and some effective strategies to guard against this type of treatment.